Service Marketing Strategies of BBC

Alka Singh
Govind Patidar
Parinesh Marskole
Rekha Sargara
Shweta Jamwal
The British Broadcasting
Corporation
One of Britain’s most important cultural
institutions
A dominant force in the Broadcasting
industry (News entertainment and information)
Tries to differentiate itself with a wide variety of
high quality programs (Teletubbies and
Castaway)
Government-owned
Service provided for a license fee
The BBC World Service Trust
Using communications for development
Charity established by BBC in 1999 to use media and communications to reduce poverty
and promote human rights, thereby enabling people to build better lives.
Strong emphasis on research and impact evaluation
Reaches potential audiences of 175 million through BBC World Service and 85 million
through BBC World TV in 33 different languages. Greater scale through national and
local media partners
Working in 40 countries worldwide - Africa, Asia, Middle East, FSU and Europe
Access to skilled BBC staff, transferring broadcasting expertise globally in TV, Radio and
Online Production with development focus.
£17m income for 2006/7. DFID, EU, Dutch, Swiss, Norwegians, UN Agencies and
Foundations.
BBC’s General Environment
The main strength is its growth potential and projection (TV,
Radio, Internet) and the strong position in the UK compared to
it’s competitors.
Social: One of the most important institutions in the UK
Technology: Holds a continuous commitment to improve their

technology and means of security (Increased use of fiber Optics,
and Digital systems)
Political: Deregulation in the telecommunication industry, and

presence of the government in decision-making
Economy: Unification of the European Union, strong presence in

the UK (basically no strong competitors)
The competitive environment
Number one provider in Radio and T.V.
Granada and Carlton Communications offer

competition, but do not represent a threat
In the world news market, CNN and BBC compete

intensely for market share
Strong local presence, less dominant globally

BBC Import Programs
TELETUBBIES THE WEAKEST LINK
ABSOLUTELY FABULOUS
WHO WANTS TO BE A MILLIONAIRE
Internal Analysis
Management: The BBC’s management has undergone changes
ranging from the Board of Governors to the Executive Committee.
Some of these changes include: Director-General: Greg Dyke
Chairman: Gavyn Davies
Marketing: About 30% of listeners, 7 million more than a year ago,

now access the BBC world service through the growing network of
nearly 2,000 local broadcasting station partners around the world.
The BBC’s website earned exceptional growth, with usage rising
92% to 75 million monthly page impressions by March 2002.
Finance/Accounting: From 2000 to 2001, the BBC improved its

efficiency and generated a positive net income in 2001. However, in
2002 the company incurred high operating expenses that were
greater than the revenues it generated.
Conclusions About The
Internal Analysis (cont’d)
Operations and Management Guidelines: Projects have to adhere
to technological standards, such as analog and digital TV
transmittal, digital radio transmittal, and the matters of the law.
Research and Development: The BBC has introduced both new

television and radio services in order to enhance its digital
programs. (digital radio, phone/radio receivers, & handheld
computers).
Computer Information Systems: CIS is an important tool that helps

the BBC to become more productive, efficient, and competitive.
(BNCS)
SWOT
Strengths, Weaknesses, Opportunities, & Threats
 S:  O:
1. Diversity of Mgmt Team 1. Deregulation of
2. Focused and strong telecommunication
objectives & goals industry
2. Government owned
 W:
 T:
1. Complexity of CIS
technology 1. Merging of competitors
2. Spending focus on 2. Lack of advertising
analog not digital
Strategy Formulation
SPACE Matrix
TOWS Matrix
The BBC falls in the IV
This matrix uses BBC’s quadrant, which indicates that
strengths, weaknesses, the company should pursue a
opportunities and threats to Competitive strategy. The firm
show the different possible should consider the following
strategies and solutions alternative courses of action:
These strategies then can be horizontal integration, market
implemented to help the penetration and product
overall performance and development.
profitability of the
organization.
Strategy Formulation
BCG Matrix IE Matrix
Radio: 52.6% market share, UK: should pursue a hold and
47.4% growth rate; considered maintain strategy including
a “STAR” market penetration and
TV: 37.1% market share, product development
62.9% growth rate; rated as
“CASH COW” US/WORLD: harvest or divest
BBC Online: “QUESTION strategies should be
MARK” This is because it has implemented. They will
a very low market share, but probably never harvest or
retains a high growth rate divest the world portion
percentage. because this is used for
“political presence.”
Face to face training in Istanbul 2006
Using iLearn
Interactive online journalism training…and all the

things that enable it, including:
Training expertise
Training material (including basic journalism, ethics, radio, TV,
online, health reporting, reporting conflict, environmental journalism)
A CMS (Content Management System) www.i-learn.co.uk/cms
Websites e.g. www.i-learn.co.uk
A discussion forum for trainees
Learning modules in iLearn
An interactive questionnaire
Virtual Newsroom
– Draft Stories – Trainees Feedback
– News Ideas – Trainers Feedback
– Public Feedback – Publication

Moving up the ladder
Editors
Contributors
Trainees
Registered Users
General Users
The project after seven months…
500,000 visits on the website
275,000 unique visitors
1,500,000 page impressions (not including visitors on BBC

Persian website)
30,000 average visits of Zigzag articles on BBC Persian website
2000 registered users
2650 posts in discussion forums

Alternative Strategies
Market Development
Partnership Strategy
Product Development
Backward Integration/Concentric Diversification

Alternative Strategy
Market Development
Expansion of digital radio in Africa and Asia

Take advantage of the high-growth rate of radio
to increase customers
Increase profits
Disadvantage:
 Limited access to digital radio (cultural, infrastructural,
and economical factors)
Alternative Strategy
Partnership Strategy/Market Development
Joint Venture with Yahoo

Increase awareness of BBC’s current
products/services in new geographic areas
Expected increase in sales
Disadvantages:
 Initially, low return on investment is possible
 Lack of appeal to American consumers
Product Development
Develop innovative programs for T.V.
(based on a cost-benefit analysis)
Internal Production (BBC) vs. External
Production
Quality
Cost
Staff/personnel
Time of production (Reliability)
Based on the SPACE Matrix, Grand Strategy,
and QSPM
Backward Integration/Concentric
Sell air time to other T.V. and radio stations
(Travel Channel, People and Arts, Clear
Channel)
Leasing air time to interested parties (suppliers
and competitors)
Increase audience and target new markets
(known brands)
Increase sales/profits with minimal or no
investment
Based on BCG and Grand Strategy Matrix
Effects of War
 Continuous war updates
 More people are watching TV and

listening to the radio, increasing ratings
 Live action coverage and interviews

with combatants is capturing audience
 Increased expenses (staff/production)

E MARKETING
E-marketing campaign
Mobile marketing looks set to become a

key part of its offering
Zigzag Online Magazine

BBC World Service launches
marketing campaign across
Pakistan
BBC World Service has launched a major
marketing campaign to grab the attention
of its Urdu audiences across Pakistan.
The aim is to promote BBC Urdu's flagship
programme.
Issues central to their lives, such as water
shortages and women's education.
Implementation
The goal is to increase profits and market
share
Stage 1: Focus on local market
 Marketing campaign/radio & web
 Financial resources
Stage 2: Export product to potential markets

 Adapt to culture & market variations
Language
Tastes & preferences
2002 2001 2000

Implementation
Identify potential customers
Establish relationships with world class
suppliers
Develop contracts for air time
Quality criteria must be met for a contract
to be accepted
Evaluation
T.V. and radio ratings

Market share
Cost/Benefit Analysis
Quarterly financial review (revenue/loss)
Consumer response
Thank You!!!

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Alka Singh

Strong emphasis on research and impact evaluation

Social: One of the most important institutions in the UK

Technology: Holds a continuous commitment to improve their

Political: Deregulation in the telecommunication industry, and

Economy: Unification of the European Union, strong presence in

Granada and Carlton Communications offer

In the world news market, CNN and BBC compete

Strong local presence, less dominant globally

Marketing: About 30% of listeners, 7 million more than a year ago,

Finance/Accounting: From 2000 to 2001, the BBC improved its

Research and Development: The BBC has introduced both new

Computer Information Systems: CIS is an important tool that helps

Interactive online journalism training…and all the

– Draft Stories – Trainees Feedback

– News Ideas – Trainers Feedback

– Public Feedback – Publication

275,000 unique visitors

1,500,000 page impressions (not including visitors on BBC

30,000 average visits of Zigzag articles on BBC Persian website

2000 registered users

2650 posts in discussion forums

Backward Integration/Concentric Diversification

Expansion of digital radio in Africa and Asia

Joint Venture with Yahoo

 More people are watching TV and

 Live action coverage and interviews

 Increased expenses (staff/production)

Mobile marketing looks set to become a

Zigzag Online Magazine

Stage 2: Export product to potential markets

2002 2001 2000

T.V. and radio ratings

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